Oil prices steadied on Wednesday after Tuesday's sharp selloff, as Saudi Arabia restored crude flows through its East-West Pipeline and resumed loadings at the Red Sea port of Yanbu. The Strait of Hormuz remains disrupted, and Qatar is mediating talks between Washington and Tehran on reopening it.
Oil prices held steady on Wednesday after tumbling in the prior session, as signs of recovering Middle East exports offset lingering concern over the Strait of Hormuz. Brent oil futures expiring in November ticked up 0.1% to $102.68 a barrel. West Texas Intermediate crude fell 0.2% to $89.24 a barrel.
Both benchmarks had fallen more than 2% on Tuesday. Brent settled down 2.6% and WTI dropped 3.5%. Despite that selloff, Brent remains on course for a monthly gain of roughly 14%.
Saudi Arabia restarts pipeline and Red Sea loadings
The latest pressure on prices came from Saudi Arabia's resumption of crude loadings at its Red Sea port of Yanbu, after the restart of its East-West Pipeline gave the kingdom an alternative export route bypassing the Strait of Hormuz. Saudi Aramco has notified customers of its October loading schedule, and shipping data showed nearly 10 million barrels of crude being loaded at Yanbu and nearby Al Muajjiz, Reuters reported.
Saudi Arabia has also restored flows through the East-West pipeline to at least 3.5 million barrels per day, around half its capacity, Bloomberg reported, citing people familiar with the matter. The recovery has eased some of the immediate supply risk from the conflict, but the Strait of Hormuz remains a key uncertainty.
Strait of Hormuz still disrupted as Qatar mediates
The waterway has faced severe disruption during the U.S.-Israeli war with Iran, and diplomatic efforts to reopen it have yet to produce a breakthrough. Qatar is mediating between Washington and Tehran, with talks focused on an agreement that could include reopening the Strait of Hormuz and easing some U.S. pressure on Iran. President Trump has rejected reports that Washington offered Tehran sanctions relief, while Iran continues to push for conditions tied to reopening the waterway.
Trump weighs diesel export ban as U.S. fuel prices surge
A Financial Times report showed Trump is considering a range of measures, including a possible diesel export ban, to curb surging domestic fuel prices as a worsening energy crisis raises political pressure on his administration. U.S. diesel prices reached $6.53 a gallon last week, more than 70% above their prewar level.
Source: Investing.com
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